Ch9 - 9-1 Schedule of Expected Cash Collections July May...

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9-1 Schedule of Expected Cash Collections July August September TOTAL May: 43,000 43,000 June: 378,000 54,000 432,000 1 st Quarter Sales 120,000 420,000 60,000 600,000 2 nd Quarter Sales 180,000 630,000 810,000 3 rd Quarter Sales 100,000 100,000 Total Cash Collections 541,000 654,000 790,000 1,985,000 AR on BS 90,000 + 350,000 + 50,000 = 490,000 9-2 Production Budget July August September QUARTER Budgeted Sales: 30,000 45,000 60,000 135,000 Desired Ending EI of FG: 4,500 6,000 5,000 5,000 Total Needs: 34,500 51,000 65,000 140,000 Less Beginning EI of FG: 3,000 4,500 6,000 3,000 Required Production: 31,500 46,500 59,000 137,000 9-3 Direct Materials Budget First Second Third Fourth Year 3 - First Required production per chip 60,000 90,000 150,000 100,000 80,000 Raw materials needed per chip 3 3 3 3 3 Total production needs per chip 180,000 270,000 450,000 300,000 240,000 First Second Third Fourth Year Production needs per chip 180,000 270,000 450,000 300,000 1,200,000 Add desired EI of RM 54,000 90,000 60,000 48,000 48,000 Total Needs 234,000 360,000 510,000 348,000 1,248,000 Less BI of RM 36,000 54,000 90,000 60,000 36,000 Raw materials purchased 198,000 306,000 420,000 288,000 1,212,000 Cost of RM per chip 2 2 2 2 2 Cost of RM to be purchased 396,000 612,000 840,000 576,000 2,424,000 Direct Labor Budget First Second Third Fourth Year Required production 5,000 4,400 4,500 4,900 18,800 Direct Labor-hours per unit .4 .4 .4 .4 .4 Total direct labor-hours needed 2,000 1,760 1,800 1,960 7,520
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